Protecting Sensitive Data & The Cost of Non-Compliance

Introduction

This article addresses the crucial aspects of protecting sensitive data and upholding data ethics within the organization. It outlines guidelines, regulations, and consequences associated with data breaches and unethical practices.

What is sensitive and personal data?  

Sensitive and personal data refer to information about an individual that can be used to identify, locate, or contact them, as well as details that are private or confidential in nature. Here's a breakdown of each:

Sensitive Personal Information  

Name, Address, Email, Phone Number, Date of Birth, Social Security Number, Bank Account Number, Passport Number, Vehicle Identification Number (VIN), Driver's License, Passwords, Payroll records, HR records 

Sensitive Health Information 

Personal Health Information, Individual Medical Record Number, Individual Medical Procedure Code, Individual Insurance Claim Number 

Regulatory requirements and penalties for non-compliance

Health Insurance Portability and Accountability Act (HIPAA)

The types of data within the scope of HIPAA include a range of personal health information including medical records, medical history, health insurance information, payment information, and any other data that can identify an individual's health status or healthcare services received. The law also covers electronic formats of this data, including ePHI, such as electronic health records and digital health information. Breaches of HIPAA can lead to significant penalties ranging from $100 to $50,000 per violation, depending on the level of negligence. Willful neglect can escalate penalties to a maximum of $1.5 million per year for each violation category. 

California Privacy Rights Act (CPRA)

The CPRA strengthens consumer privacy protections by introducing enhanced data rights, such as the right to correct personal information, stricter regulations on sensitive data sharing, and the establishment of the California Privacy Protection Agency (CPPA) for enforcement. This includes a wide range of personal information such as identifiers (names, addresses, etc.), commercial information (purchase history, preferences), biometric data, internet and electronic activity, geolocation data, audio and visual information, and professional or employment-related information. Breaches of the CPRA can result in penalties of up to $2,500 for each violation or $7,500 for intentional violations involving minors. 

Investigations and Impact of Data Breach Incidents

1. Timely reporting is crucial to minimize the potential impact of breaches and to comply with legal obligations. This involves promptly notifying the appropriate authorities and affected individuals about the breach's occurrence and its potential consequences. Conducting a thorough breach investigation process is equally vital. Such investigations aim to uncover the root cause and extent of the breach, determining how the breach occurred, what data was compromised, and the potential implications.
2. The financial implications of data breaches can extend beyond fines and legal costs. Remediation expenses can pile up quickly, including costs for investigating the breach, notifying affected individuals, implementing security measures to prevent future breaches, and potential litigation. Data breaches may also lead to a loss of customer trust and loyalty. 

Conclusion

Taking proactive measures to identify and secure sensitive data, promptly reporting breaches, and conducting thorough investigations are essential to mitigate these risks and preserve both financial stability and brand reputation.

In our next newsletter, we'll cover the best practices for data protection.